Geodesic
Optimal design of sales and maintenance under the renewable warranty
RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 2, pp. 529-542

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This paper presents an integrated model to determine the optimal sales price, preventive maintenance (PM) interval and warranty period with the objective of maximizing the total profit. It is assumed that the sales growth can be featured by NHPP-Bass model over the time. Production cost, R&D cost and warranty cost involving product reliability are considered in this integrated profit model. Then, we consider a periodic PM policy, minimal repair and replacement policy in this paper and the product is deteriorated with the time goes. We also consider effects of the repair time of the repairable product. During the warranty period, manufacturer conducts the PM periodically, and if the repair time is beyond the limited repair time, the failure is replaced with a new product attached renewed warranty period. If not, the failed product is conducted with only minimal repair. Moreover, we give the numerical example and the sensitive analysis to provide insights into the influence of sales price, warranty period and PM interval.

Reçu le :
Accepté le :
DOI : 10.1051/ro/2017077
Classification : 90B25, 90B50, 90C30
Keywords: Sales price, preventive maintenance, warranty period, total profit, optimization

Jiao, Can 1 ; Zhu, Xiaoyan 1

1 
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     title = {Optimal design of sales and maintenance under the renewable warranty},
     journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
     pages = {529--542},
     publisher = {EDP-Sciences},
     volume = {52},
     number = {2},
     year = {2018},
     doi = {10.1051/ro/2017077},
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     zbl = {1401.90065},
     language = {en},
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Jiao, Can; Zhu, Xiaoyan. Optimal design of sales and maintenance under the renewable warranty. RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 2, pp. 529-542. doi: 10.1051/ro/2017077

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